P13-6 (Algo) Computing Comparative Financial Statements and ROA Profit Driver Ratios LO 13-3, 13-4, 13-5 [The following information applies to the questions displayed below.] The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue Cost of goods sold Gross profit Pretax income Income tax Net income Balance sheet: Cash $200,000 $169,500 114,500 101,000 85,500 68,500 Operating expenses and interest expense 57,000 53,500 28,500 15,000 9,000 4,500 $ 19,500 $ 10,500 Inventory Accounts receivable (net) Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (12% interest) Common stock ($5 par value, 6,500 shares outstanding) $ 5,000 14,500 $ 7,500 18,500 41,000 36,000 46,500 39,000 $107,000 $101,000 $ 16,500 45,500 32,500 $ 17,500 45,500 32,500 Retained earnings 12,500 5,500 Total liabilities and stockholders' equity $107,000 $101,000